Breitling Energy announced it has acquired various overriding royalty interests to develop 900 wells in six states. The oil exploration and production company said the interests will allow it to drill on an estimated 4,281 acres in Colorado, Montana, North Dakota, Texas, Wyoming and West Virginia.
"By purchasing overrides in these wells it gives Breitling Energy long-life potential income with new well upside with no exposure to the drilling cost," Chris Faulkner, chief executive officer of Breitling Energy, said in a statement.
Well production totals about $71,000 per month, according to the company. Faulkner said it was able to strike a good deal through the company's industry relationships.
Recently, Breitling announced an oil discovery in Taylor County, Texas, and started production on Feb. 11. The company said its wells at the Teaff #1 have an average of 40 to 50 barrels of oil per day with production projected to rise to more than 160 bpd.
"We are very pleased with the current results of this well and hope we can expand the daily production flow in the near future," Faulkner said in a statement about its oil discovery in Texas.